NEW DELHI: Nobel-winning economist Abhijit Banerjee said India needs a big stimulus package, with cash transfers to bottom 60% of population, to restore paying capacity which will revive demand, adding that lack of demand has been the bane of Indian economy which has been further compounded by the coronavirus crisis. He also called for debt waiver for the financial quarter and giving money to the states to launch new welfare schemes.
In a video interaction with Congress leader Rahul Gandhi, Banerjee said India was stuck with 1% of GDP as relief package while the world including the US and Japan have gone for 10% of GDP. Batting for cash transfers, Banerjee said the US administration is run by a group of financiers who worked in the financial sector and not by liberals, and yet they have “decided that just for economic survival we need to pump money into people’s hands”. Added he, “I think we should take a cue from that.” He said the Centre should issue ration cards and give foodgrains to any person who wants it.
In a video interaction with Congress leader Rahul Gandhi, Banerjee said India was stuck with 1% of GDP as relief package while the world including the US and Japan have gone for 10% of GDP. Batting for cash transfers, Banerjee said the US administration is run by a group of financiers who worked in the financial sector and not by liberals, and yet they have “decided that just for economic survival we need to pump money into people’s hands”. Added he, “I think we should take a cue from that.” He said the Centre should issue ration cards and give foodgrains to any person who wants it.
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